VES-3-02-OT:RR:BSTC:CCR H248285 KLQ
Mr. James E. Droney, Director Itinerary and Destination Planning
The World Residences at Sea
14471 Miramar Parkway, Suite 401
Miramar, Florida 33027
RE: Coastwise Transportation; 46 U.S.C. §§ 55103 and 55104; 19 C.F.R. § 4.80a(b)(1).
Dear Mr. Droney:
This letter is in response to your October 20, 2013, ruling request regarding the proposed itinerary of the M/V THE WORLD (the “vessel”). Our decision follows.
FACTS
The M/V THE WORLD will depart San Juan, Puerto Rico on January 22, 2014 and arrive in New Orleans, Louisiana on January 28, 2014. The vessel will depart from New Orleans, Louisiana on January 30, 2014 and arrive in Tampa, Florida on February 1, 2014. A December 12, 2013, email from your company states that it is anticipated that some of the subject passengers, those who do not own units aboard the vessel, will go ashore temporarily while the vessel is berthed in New Orleans, will re-board, and will continue on the voyage to Tampa, while other passengers that embarked in Puerto Rico will not leave the vessel in New Orleans and will disembark in Tampa.
ISSUES
Whether the transportation of the subject passengers from San Juan, Puerto Rico to New Orleans, Louisiana or Tampa, Florida constitutes an engagement in coastwise trade in violation of 46 U.S.C. § 55103.
Whether the transportation of the subject passengers from New Orleans, Louisiana to Tampa, Florida constitutes an engagement in coastwise trade in violation of 46 U.S.C. § 55103.
LAW and ANALYSIS
Generally, the coastwise laws prohibit the transportation of passengers or merchandise between points in the United States embraced within the coastwise laws in any vessel other than a vessel built in, documented under the laws of, and owned by citizens of the United States. Such a vessel, after it has obtained a coastwise endorsement from the U.S. Coast Guard, is said to be “coastwise qualified.”
The coastwise laws generally apply to points in the territorial sea, which is defined as the belt, three nautical miles wide, seaward of the territorial sea baseline, and to points located in internal waters, landward of the territorial sea baseline. See 33 C.F.R. § 2.22(a)(2)(2013). The coastwise law applicable to the carriage of passengers is found in 46 U.S.C. § 55103 which provides:
(a) In General. Except as otherwise provided in this chapter or chapter 121 of this title, a vessel may not transport passengers between ports or places in the United States to which the coastwise laws apply, either directly or via a foreign port, unless the vessel-
(1) is wholly owned by citizens of the United States for purposes of engaging in coastwise trade; and
(2) has been issued a certificate of documentation with a coastwise endorsement under chapter 121 or is exempt from
documentation but would otherwise be eligible for such a certificate and endorsement.
(b) Penalty. The penalty for violating subsection (a) is $300 for each passenger transported and landed.
Issue 1
Your company proposes to embark passengers in Puerto Rico and disembark them in New Orleans or Tampa. Pursuant to 46 U.S.C. § 55104(b), “[e]xcept as otherwise provided in this section, a vessel not qualified to engage in the coastwise trade may transport passengers between a port in Puerto Rico and another port in the United States.” To date, no qualified U.S.-flag passenger vessel service between ports in Puerto Rico and another port in the U.S. exists. Accordingly, the M/V THE WORLD, as a non-coastwise qualified vessel, may transport the subject passengers from Puerto Rico to another port in the United States. Therefore, the first proposed transportation from San Juan, Puerto Rico to New Orleans, Louisiana or Tampa, Florida would not be a violation of the coastwise laws pursuant to 46 U.S.C. § 55104(b).
Issue 2
You also indicate that some of the passengers that embark in Puerto Rico may temporarily go ashore in New Orleans before they disembark in Tampa. The regulations under 19 C.F.R. § 4.80a(b)(1) provide:
If the passenger is on a voyage solely to one or more coastwise ports and the passenger disembarks or goes ashore temporarily at a coastwise port, there is a violation of the coastwise law.
The voyage contemplated is from Puerto Rico to New Orleans and Tampa, which are coastwise ports. Further, the regulations under 19 C.F.R. § 4.80a(a)(4) provide that the term embark only applies to a passenger boarding a vessel at the start of a voyage and the term disembark only applies to a passenger leaving the vessel permanently at the conclusion of that voyage. If the passengers go ashore in New Orleans and then re-board the vessel to continue on to Tampa, that action constitutes temporarily going ashore and not a disembarkation or an embarkation. Since the subject voyage is solely to coastwise ports, New Orleans and Tampa, the act of temporarily going ashore in New Orleans would be a violation of 46 U.S.C. § 55103 and 19 C.F.R § 4.80a(b)(1).
HOLDING
The first proposed transportation of passengers from San Juan, Puerto Rico to New Orleans, Louisiana or Tampa, Florida would not constitute an engagement in coastwise trade in violation of 46 U.S.C. § 55103, pursuant to 46 U.S.C. § 55104.
The second proposed transportation of passengers from Puerto Rico, in which some passengers temporarily go ashore in New Orleans, Louisiana and then disembark in Tampa, Florida, would be a violation of 46 U.S.C. § 55103 and 19 C.F.R § 4.80a(b)(1).
Sincerely,
Lisa L. Burley
Chief, Supervisory Attorney-Advisor
Cargo Security, Carriers and Restricted Merchandise Branch
Office of International Trade, Regulations and Rulings
U.S. Customs and Border Protection